The logo of Italian carmaker Fiat is shown on the radiator grille of a car / ARND WIEGMANN REUTERS

by Chris Woodyard, USA TODAY

by Chris Woodyard, USA TODAY

The proposed merger of two of the world's largest automakers to form Fiat Chrysler Automobiles hit a snag Wednesday that issue could result in a delay.

Though the issue involved shareholder rights in Europe, where Fiat is based, the issue has ramifications for U.S. investors who were looking forward to the automotive giant's listing on the New York Stock Exchange.

Even though Fiat shareholders have overwhelmingly cleared the way for the merger of Fiat with its new corporate entity registered in the Netherlands and based in London, dissenting shareholders could exercise their right to cash out under Italian law. The concern is that the payouts could exceed a 500 million Euro, or $669.9 million, cap.

Fiat shares took a sharp fall in trading on the Milan, Italy, exchange even as trading was temporarily suspended at one point. As a result, the amount per share that the company is offering dissenting shareholders, 7.727 Euros, was more than Fiat shares were worth in daily trading, an intraday low of 6.56 a share, Bloomberg News reported. That's the lowest price since Jan. 8. If droves of investors exercise their right and head for the exit, Fiat would hit its cap in a hurry and the merger would be put off.

CEO Sergio Marchionne, addressing the issue to analysts and reporters Wednesday, said the equity markets are performing "strangely" and that fears are overblown in the media. Though he says the cap is "absolute," he says he is "unfazed by all of this." At worst, the merger, he says, can be done at another time.

Fiat already owns Chrysler, which has thrived lately on the strength of its Ram truck lineup and new Jeep models.